Statement of Administration Policy: S. 724 - Airline Merger Transfer Act of 1987

(Senate)
(Ford (D) Kentucky and 2 others)

The administration opposes enactment of S. 724 and, if it is presented to the President for signature, his senior advisors will recommend that he veto it. The airline industry is fully mature and does not need, or benefit from, industry-specific labor protection provisions for mergers. Existing statutory provisions and administrative arrangements are sufficient to assure that employee interests are protected, where necessary. The administration would particularly oppose any amendment to remove the Airport and Airways Trust Fund from the budget totals and statutory budgetary limitations.

The administration supports free standing legislation to advance the date of transfer to the Department of Justice of the Department of Transportation's antitrust review authority over airline mergers and acquisitions.